I saw another story about Alibaba's IPO today. If you haven't been paying attention, it's sort of a Chinese combination of Amazon and Ebay but it's bigger than both of them combined. Their company philosophy really struck me because it's the way I was brought up, trained, and the way I've always thought a business' priorities should be set. Except I realized it's been years since I've seen it practiced, except for the odd mechanic, handyman or taco stand.

"Customers first, employees second, investors third."

Whatever happened to that? Any more, it seems to be "Investors first.... And, well, yeah, that pretty much covers it." I was taught that the customer always comes first and if you keep him happy, the money will come. It seems to have worked for Jack Ma. He's made $8.9 Billion, so far, this year and the IPO hasn't even happened yet.

It was very refreshing to hear that. Almost makes me want to buy something from them but I don't think they do business outside of China.

JQP posted; "Almost makes me want to buy something from them but I don't think they do business outside of China."

The logical next step will be to open AliBaba warehouses here in the US. Amazon, Ebay and WalMart will be history in a few years. Alibaba's pirated and slave labor goods will be much cheaper.."Grab them (the Viet Namese) by the balls, their hearts and minds will follow."..General Westmoreland"Grab them (the Americans) by their wallets, their hearts and minds will follow".. Jack Ma

Agree to a point, but you did note that he made billions. IMHO, that brings it into the realm of fair play.

As for your assertion of how business was conducted, where are you getting that information? I am not disagreeing with you, but would like more background on why you made that statement.

From an economic standpoint (which deals with the motivations of firms) there has not really been any significant movement away from the generation of profit, which ultimately goes to the share holders. That focus goes all the way back to The Wealth of Nations.

When a true genius appears, you can know him by this sign: that all the dunces are in a confederacy against him. Jonathan Swift

As for investors last, this seems more in line with a communistic economic philosophy, so I am not surprised.

Can't see in any way, shape, or form how that is communistic.

It seems a lot more like someone building a business that is supposed to last, rather than trying to squeeze as much money out of the situation as quickly no matter the cost to the customer or employee.

Fordama

This country of the United States was not built by those who waited and rested and wished to look behind them.---JFK

AIYK wrote:Agree to a point, but you did note that he made billions. IMHO, that brings it into the realm of fair play.

Not really. I'm sure everybody here is thrilled for him, going from being a humble English teacher to being a multi-billionaire. Some of us are especially happy that he did it the old fashioned way - by putting his customers first and earning it, rather than by trying to squeeze every last dime out of his customers and the business just so he could make more money.

Maybe you weren't around when that was the common practice, or maybe you forgot or maybe it was the side of the Business Department you came from, but on the Marketing side we were taught that to make more money, you sold more stuff. Period. Sell enough of it and you'll make good money. Don't sell enough of it, maybe your idea wasn't very good. Mr. Ma's idea seems to have been pretty good.

The moment you negotiate a deal with someone to back your company with their private capital (or go public and have shareholders), you have a moral obligation to protect their and your assets. Imo investors should always be priority. No working capital = no customers.

Once upon a time the corporate tax rate was 90%. Employees were regarded as valuable assets with legacy benefits.

That seems to have been kicked to the curb.

One can argue the fairness of that belief, but what is not debatable is whether not we were better off as a society.

Sounds like Mr. Ma believes that for anyone (investors, employees etc) to get paid, customers are needed in adequate amounts.

They told me if I voted for Hillary Clinton the president would be emotional, impulsive, and unpredictable. They were right. I voted for Hillary Clinton and got a president that is emotional, impulsive, and unpredictable.

coolestanonuser wrote:The moment you negotiate a deal with someone to back your company with their private capital (or go public and have shareholders), you have a moral obligation to protect their and your assets. Imo investors should always be priority. No working capital = no customers.

They aren't mutually exclusive, and there's nobody forcing you to purchase their stock or invest in their company.

Having happy employees means having happy customers, and having happy customers means increased profits. Some are even of the opinion that it's actually immoral to put profits ahead of people. Crazy, right?